Thinking like an Economist; How Efficiency Replaced Equality in U.S. Public Policy

How Economic Thinking Took Over Washington—and Still Shapes Policy Today

For decades, progressive ambitions have been tempered by a cautious, incremental approach to policy, leaving many to wonder: What happened to bold, transformative change on the left? In Thinking like an Economist, Elizabeth Popp Berman explores how a particular way of thinking—an "economic style of reasoning"—became dominant in Washington between the 1960s and 1980s and continues to constrain political possibilities today.

Initially introduced by liberal technocrats aiming to improve governance, this economic perspective emphasized efficiency and cost-benefit analysis. Over time, it reshaped policymaking across areas like healthcare, poverty, antitrust, and environmental regulation. While often aligned with Republican priorities, this approach also clashed with liberal efforts focused on rights, equity, and corporate accountability. By the time of the Carter administration, economic reasoning had permeated government, leading many Democrats to prioritize fiscal restraint and avoid expansive reforms—just as Reagan and his successors selectively championed efficiency to serve their own agendas.

A revealing account of how economic thinking redefined American politics, Thinking like an Economist sheds light on the forces that shaped today's policy landscape. As the political left gains new momentum, breaking free from these long-standing constraints will require reimagining what is possible—and challenging the assumption that efficiency should always come first.